Battered James Hardie talks up US recovery

Building products maker James Hardie's first-half profit has fallen 35 per cent but the company says there are good signs in its key market, the US.

James Hardie made a net profit of $US83.5 million ($A80.86 million) in the six months to September 30, down from $US128.4 million in the same period in the previous year.

The result included an unfavourable adjustment to the company's asbestos liabilities due to a stronger Australian dollar.

Net operating profit excluding items such as asbestos and legal liabilities in the six months to September was $US78.6 million, down two per cent from $US80.6 million in the previous corresponding period.

The market has been unimpressed with the result, with James Hardie among the worst performing stocks on the ASX200 this morning, down 43½ cents - 4.8 per cent - at $8.535.

Chief executive Louis Gries said there were signs of a sustainable housing recovery in the United States, where the company generates a majority of its earnings.